Question

Andy Wright,D.D.S., opened a dental practice on January 1, 2008.
During the first month
of operations the following transactions occurred.
1. Performed services for patients who had dental plan insurance.
At January 31, $875 of such
services was earned but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31
totaled $520.
3. Purchased dental equipment on January 1 for $80,000, paying
$20,000 in cash and signing a
$60,000, 3-year note payable.The equipment depreciates $400 per
month. Interest is $500 per
month.
4. Purchased a one-year malpractice insurance policy on January 1
for $12,000.
5. Purchased $1,600 of dental supplies. On January 31, determined
that $400 of supplies were on
hand.
Instructions
Prepare the adjusting entries on January 31. Account titles are:
Accumulated Depreciation—
Dental Equipment, Depreciation Expense, Service Revenue, Accounts
Receivable, Insurance
Expense, Interest Expense, Interest Payable, Prepaid Insurance,
Supplies, Supplies Expense,
Utilities Expense, and Utilities Payable.